GST Council revises rates for 66 items : Next Council meet on 18th Jun.
As the GST Implimentation Target date is Approaching, GST council is working against time and Making decision on very quickly basis.
Just after 10 days of Finalisation of Rates on Services & Goods, 16th GST Council meet concluded today, the rates of 66 items under the upcoming GST regime have been revised. Addressing the media at a press meet after the meeting, Finance Minister Arun Jaitley said that the rates have been revised after getting feedback from industry players. Arun Jaitley said: " After considering the recommendations, the GST Council has reduced the tax level in 66 out of 133 items on which representations were made by the industries." The reductions, he said, were based on two major principles -- maintaining equivalence and the change in the utilisation behavior. Some of the revised tax items, the FM highlighted were:
Cashew revised from 12% to 5%
Packaged food, including some fruits and vegetables, pickles, toppings, instant food, sauces revised from 18% to 12%
Agarbatti revised from 12% to 5%
Dental wax revised from 28% to 8%
Insulin revised from 12% to 5%
Plastic beads revised from 28% to 18%
Plastic turpolin revised from 28% to 18%
School bags revised from 28% to 18%
Exercise books revised from 18% to 12%
Coloring books revised from 12% to nil
Pre-cast concrete pipes revised from 28% to 18%
Cutlery revised from 18% to 12%
Tractor components revised from 28% to 18%
Computer printers revised from 28% to 18%
Small Relief for Cinema Industry : Another important item on which GST has been reduced was the entertainment tax on cinema. Under the GST, there will now be two categories for movie tickets. For tickets that cost less than Rs 100, a tax of 18% will be levied. For the tickets costing more than Rs 100, a GST of 28% will be levied. Presently, entertainment tax is levied by individual states. The states levy a different rate, ranging from 28-110%, and the weighted average for the entire country is about 30%. However, several state governments give an exemption to cinema of the particular language of that state. Under GST, there will now be no centralised exemption. FM said:" If states want, through the DBT (Direct Benifit Transfer), the state can refund the GST of regional cinema." For workers in industries like textile, diamond processing etc, where the workers take the work home, 18% tax that is now being charged will be fixed at 5% because the GST for these sectors have gone down as well. The next meeting for the GST Council will be on June 18th.
Regards
Logical Abhishek
Source : ET